United Bankshares lists earnings

February 2, 2014

PARKERSBURG -United Bankshares Inc. has reported an increase in earnings for the year of 2013 as compared to the year of 2012.

Earnings for the year of 2013 were $85.6 million or $1.70 per diluted share, an increase from earnings of $82.6 million or $1.64 per diluted share for the year of 2012. Earnings for the fourth quarter of 2013 were $19.7 million or 39 cents per diluted share as compared to earnings of $21.2 million or 42 cents per diluted share for the fourth quarter of 2012.

"The year 2013 was another successful year for United," said Richard M. Adams, United's Chairman of the Board and Chief Executive Officer. "Earnings rose from 2012 while the dividend to shareholders was increased for the 40th consecutive year. We also announced the signing of a definitive merger agreement with Virginia Commerce Bancorp Inc., the largest acquisition in United's history."

Fourth quarter of 2013 results produced a return on average assets of 0.91 percent and a return on average equity of 7.57 percent. For the year of 2013, United's return on average assets was 1.02 percent while the return on average equity was 8.43 percent. United's annualized returns on average assets and average equity were 1.01 percent and 8.44 percent, respectively, for the fourth quarter of 2012 while the returns on average assets and average equity were 0.98 percent and 8.35 percent, respectively, for the year of 2012.

The results for the fourth quarter and year of 2013 included noncash, before-tax, other-than-temporary impairment charges of $6.4 million and $7.3 million, respectively, on certain investment securities. The results for the fourth quarter and year of 2012 included noncash, before-tax, other-than- temporary impairment charges of $2 million and $7.4 million, respectively, on certain investment securities. Also included in the results for the year of 2012 was an accrual of $3.3 million with respect to a settlement of claims asserted in class actions against United Bank, Inc. of West Virginia.

United's asset quality continues to outperform its peers. United's percentage of nonperforming loans to loans, net of unearned income of 1.21 percent at Dec. 31, 2013, compares favorably to the most recently reported percentage of 1.91 percent at Sept. 30, 2013, for United's Federal Reserve peer group. At Dec. 31, 2013, nonperforming loans were $81.1 million, down from nonperforming loans of $92.8 million or 1.43 percent of loans, net of unearned income, at Dec. 31, 2012. As of Dec. 31, 2013, the allowance for loan losses was $74.2 million or 1.11 percent of loans, net of unearned income, which was comparable to $73.9 million or 1.13 percent of loans, net of unearned income, at Dec. 31, 2012. Total nonperforming assets of $119.3 million, including OREO of $38.2 million at Dec. 31, 2013, represented 1.37 percent of total assets which also compares favorably to the most recently reported percentage of 1.52 percent at Sept. 30, 2013, for United's Federal Reserve peer group.

United continues to be well-capitalized based on all regulatory guidelines. United's estimated risk-based capital ratio is 13.7 percent at Dec. 31, 2013, while its Tier I capital and leverage ratios are 12.5 percent and 10.7 percent, respectively. The regulatory requirements for a well-capitalized financial institution are a risk-based capital ratio of 10 percent, a Tier I capital ratio of 6 percent and a leverage ratio of 5 percent.

Tax-equivalent net interest income for the fourth quarter of 2013 was $70.7 million which was relatively flat from the fourth quarter of 2012, decreasing $646 thousand or less than 1 percent. The slight decrease was due mainly to a decline in the average yield on earning assets. The fourth quarter of 2013 average yield on earning assets decreased 27 basis points from the fourth quarter of 2012. Partially offsetting this decrease to taxequivalent net interest income for the fourth quarter of 2013 was an increase of $256.6 million or 3 percent in average earning assets from the fourth quarter of 2012. Average net loans and average investment securities increased $179.6 million or 3 percent and $108.8 million or 15 percent, respectively, while short-term investments declined $31.8 million or 12 percent. In addition, the average cost of funds for the fourth quarter of 2013 declined 13 basis points as compared to the fourth quarter of 2012. The net interest margin for the fourth quarter of 2013 was 3.66 percent, which was a decrease of 17 basis points from a net interest margin of 3.83 percent for the fourth quarter of 2012.

Tax-equivalent net interest income for the year of 2013 was $275.8 million, a decrease of $8.3 million or 3 percent from the year of 2012 due mainly to a decrease in the average yield on earning assets. The year of 2013 average yield on earning assets decreased 27 basis points from the year of 2012.

On Jan. 30, 2013, United announced the signing of a definitive merger agreement with Virginia Commerce Bancorp Inc. ("Virginia Commerce") headquartered in Arlington, Va. Virginia Commerce has 28 banking offices, one residential mortgage origination office and one wealth management office located in the Northern Virginia suburbs of Washington, D.C. United and Virginia Commerce were scheduled Jan. 31, 2014, after the close of business.

United has consolidated assets of about $8.7 billion with 113 full service offices in West Virginia, Virginia, Maryland, Ohio, Pennsylvania and Washington, D.C. United Bankshares stock is traded on the NASDAQ Global Select Market under the quotation symbol "UBSI."